Exhibit 5-5 Demand curve for computers
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In Exhibit 5-5, the total revenue at point E on the demand curve equals:

The price effect of a price decrease by a monopolist refers to:

A) the loss in revenue due to the price reduction. B) the increase in sales due to the price reduction. C) the increase in revenue because of an increase in sales. D) the decrease in the demand for labor due to the lower price of the final product.

A firm's marginal cost is $82, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is

A) less than $40,000. B) between $40,000 and $40,050. C) between $40,050 and $40,080. D) greater than $40,080.